What the Redstone Credit Card Is
Redstone is a secured credit card issued by Redstone Bank, a federally chartered bank based in Nevada. You deposit cash into a savings account, and that deposit becomes your credit limit — typically between $500 and $25,000. You then use the card like any other credit card, and your payment history is reported to the three major credit bureaus: Equifax, Experian, and TransUnion.
The card is designed for people rebuilding credit after missed payments, collections, or a period without credit history. Because your deposit secures the bank's risk, the approval process does not depend on your credit score the way unsecured cards do. However, you still need to meet Redstone's income and identity requirements, and the bank will check your banking history through ChexSystems.
Key Takeaways
- Your cash deposit becomes your credit limit, so you control how much credit you take on by choosing your deposit amount.
- Annual fees range from $35 to $99 depending on the card tier, and interest rates typically fall between 18% and 24% APR.
- Redstone reports your payment activity to all three credit bureaus, which means on-time payments build your credit score over time.
- After 12 to 18 months of on-time payments, you may be able to convert to an unsecured card and recover your deposit.
- The card requires a minimum deposit of $500 and a valid Social Security number or ITIN, plus proof of income.
Deposit Requirements and Credit Limits
Redstone requires a minimum deposit of $500 to open the card. Your deposit is held in a savings account at Redstone Bank and earns a small amount of interest — the rate varies but is typically less than 1% APY. Your credit limit equals your deposit amount, so if you deposit $2,000, your limit is $2,000.
You can increase your deposit and credit limit later by adding funds to your savings account. There is no maximum deposit stated in the standard terms, though the bank may set limits based on your income and account history. The deposit remains yours and is not forfeited if you miss a payment or close the account — it is returned to you, though the bank may hold it if you owe a balance on the card.
Fees and Interest Rates
Redstone offers multiple card tiers, each with different fees. The standard card carries an annual fee of $35; a premium tier costs $99 per year. There is no monthly fee, no foreign transaction fee, and no late fee if you pay within 10 days of the due date. After 10 days, a late fee applies, though the exact amount depends on your balance.
Interest rates (APR) typically range from 18% to 24%, depending on the tier and your creditworthiness at the time of approval. This is higher than most unsecured cards but standard for secured cards aimed at people rebuilding credit. If you carry a balance, interest accrues daily on the unpaid amount. Paying your full statement balance each month avoids interest charges entirely.
How Redstone Reports to Credit Bureaus
Redstone reports your account activity — including your payment history, credit utilization, and account age — to Equifax, Experian, and TransUnion each month. This reporting is what allows the card to help rebuild your credit score. On-time payments are the single largest factor in credit scoring, so consistent, full payments each month will raise your score faster than sporadic or partial payments.
Credit utilization (the percentage of your limit you use each month) also affects your score. Using less than 30% of your limit is ideal; using more than 50% can lower your score even if you pay on time. Since your limit equals your deposit, keeping your balance low relative to that limit helps your score climb.
Conversion to an Unsecured Card
After 12 to 18 months of on-time payments, Redstone may offer to convert your secured card to an unsecured card. When this happens, your deposit is returned to you, and your credit limit may increase. The exact timeline and conditions vary — Redstone reviews accounts individually and does not may provide conversion at a specific date.
Conversion is not automatic. You must maintain a clean payment record: no late payments, no over-limit transactions, and ideally low utilization. If your credit score has improved significantly during this period, you may also be offered better terms, such as a lower APR or waived annual fee. Some customers convert within 12 months; others take longer if their payment history is inconsistent.
How to Open an Account
You can open a Redstone account online through the bank's website. You will need a valid Social Security number or ITIN, proof of income (recent pay stub, tax return, or bank statements showing deposits), and a government-issued ID. The bank also checks your ChexSystems report, which tracks banking history — a history of unpaid overdrafts or fraud can result in denial.
The process takes about 15 minutes. Once approved, you fund your account by transferring money from your bank account or mailing a check. Redstone will then mail your physical card, which typically arrives within 7 to 10 business days. You can use the card when ready for online purchases once your account is funded, even before the physical card arrives.
Redstone Compared to Other Secured Cards
Other secured card issuers include Capital One, Discover, and U.S. Bank. Capital One's Secured Mastercard has a lower minimum deposit ($200) and no annual fee, but its APR range is similar to Redstone's. Discover's secured card also has no annual fee and reports to all three bureaus. U.S. Bank's secured card charges a $25 annual fee and requires a $500 minimum deposit.
The main differences lie in annual fees, APR ranges, and conversion timelines. Redstone's $35 annual fee is moderate; some cards charge more, some charge nothing. Redstone's APR is typical for the secured card market. If you are comparing cards, focus on the annual fee (which you will pay every year until conversion), the APR (which matters only if you carry a balance), and the conversion timeline (which affects how long you tie up your deposit).
Frequently Asked Questions
Can I use my Redstone deposit as collateral for a loan?
No. Your deposit is held in a savings account and is not available for withdrawal while the card account is open. The deposit secures the credit card only. If you need cash, you would need to close the card account and request your deposit back, which would also close your credit-building opportunity.
What happens if I miss a payment?
A missed payment is reported to the credit bureaus and will lower your credit score. Redstone may also charge a late fee. If you miss a payment by more than 30 days, the account may be reported as delinquent, which stays on your credit report for seven years. Contact Redstone when ready if you cannot pay on time to discuss options.
Does Redstone offer a rewards program?
Redstone does not offer cash back, points, or travel rewards on purchases. The card is designed for credit building, not rewards. Once you convert to an unsecured card or move to a different issuer, you can pursue cards with rewards programs.
Can I increase my credit limit without adding more money?
No. Your credit limit is tied directly to your deposit. To increase your limit, you must deposit additional funds into your savings account. Redstone does not offer unsecured credit increases on the secured card.
What if I close my account before conversion?
You can close your account at any time. Your deposit will be returned to you, minus any outstanding balance on the card. Closing the account does not hurt your credit score directly, but it does stop the positive payment history from being reported, which may slow future credit score growth.